Enbridge, the international pipeline company based in Calgary, Alberta Canada, has approved the expansion of the southern segment of its British Columbia pipeline system, a project that would cost up to $2.65 billion after strong demand from crude oil producers.

The company, like many of its competitors, posted higher third-quarter earnings on Friday and separately launched an 'open season' for capacity on the northern segment of the B.C. line. Interest in the open season would determine if Enbridge launches a potential $1.45 billion expansion of that line.

Enbridge said the T-South expansion of its B.C. pipeline system, which originates near Chetwynd and extends south to the Canada-U.S. border at Huntingdon-Sumas, will add 300 million cubic feet per day (cf/d) of capacity.

The T-South expansion is expected to come into operation in 2028, while open season for T-North is expected to end on Jan. 10, 2023.